By using an agent to purchase insurance, the policyholder receives more personal service. An agent with whom there is direct contact can be vital when purchasing a product and necessary when filing a claim. An agent can deliver quality insurance with competitive pricing and local personalized service.

If you insure your property for less than its new replacement value – this means that you are under-insured – then you will have to bear a proportion of any loss in the event of a claim.

In calculating underinsurance, the insurance company will apply the principle of average.

Example of how underinsurance / average is calculated:

1. a) Loss: N$24 000
2. b) Sum Insured: N$75 000
3. c) Replacement Value: N$100 000
4. d) Settlement: N$24 000 x (75 000 / 100 000) = N$18 000 less the excess)
5. e) Outcome: 25% Underinsured (own insurer) and 75% payment due by the

insurance company

The insurance company will never pay out more than the sum insured.

Making sure any potential damage is covered will mean avoiding any nasty payments from your own wallet

1. Several factors can affect the cost of your vehicle insurance – some of which you can control and some that are beyond your control.

Insurance companies use statistics to determine premiums.

The type of car you drive, the purpose the car serves, your age, your date of driver’s license, your claims record can all affect how much your insurance will cost you.

Even your marital status can affect your cost of insurance. Statistics show that married people tend to have fewer and less costly accidents than single people.

• Buy your homeowners and vehicle insurance from the same insurer.
• Maintain a good credit record.
• Maintain your building, content, and vehicles.
• Make sure your home security measures are in place.
• Don’t leave valuable items in the open for thieves to see.

1. There are several things you can do to lower the cost of your homeowner’s insurance.

When you shop, be careful to make sure each insurer is offering the same coverage. (Compare the excess and the cover limits)

1. Flaws or defects, whether present when the item was new or discovered afterwards.
2. Damage done by termites, pests, moths, vermin, insects, or the actions of your own domestic pets.
3. Failure to take reasonable care to protect and maintain the insured property.
4. Wear and tear including excessive usage.